Trio of Tech-focused Tax Credits Pass in Louisiana Legislature

At the close of the 2011 legislative session in Louisiana last week, lawmakers approved three measures to encourage investment in high-tech economic endeavors. This includes renewing and enhancing the R&D tax credit and the Technology Commercialization credit and reinstating an angel investor tax credit for investment in emerging startups.

Both the R&D tax credit and the Technology Commercialization Credit and Jobs program were extended another six years and converted from refundable tax credits to rebates as proposed by Gov. Bobby Jindal (see the March 2, 2011 issue of the Digest). This will allow the incentive to be delivered more quickly to companies, according to the governor's office. Under the new legislation, both programs will provide companies with rebates of up to 40 percent for qualified R&D expenses and for investment in commercialization of Louisiana technology, respectively. The corresponding bill numbers are SB 135 and SB 134.

Lawmakers also approved a measure to re-establish an angel investor tax credit program providing a 35 percent transferable tax credit for angel investments until July 1, 2015. The credits are capped at $5 million annually. A prior law in effect from 2005 to 2009 allowed investors to recover up to 50 percent of their investment in in-state startups, reports New Orleans City Business.